The Colorado Senate recently passed a bill that would prohibit credit card deposits to fund accounts at the online betting sites we recommend, among several other consumer protections. The measure now awaits the governor’s signature to be signed into law.

Safety Measures

The Colorado Senate approved an amendment by the House attached to SB 131 that tweaks the state’s sports betting laws, instituting greater consumer protections and responsible gambling protocols.

Although many major mobile sportsbooks already prohibit the use of credit cards to fund accounts, the amendment makes it a requirement for all mobile sportsbooks operating in the Centennial State. The focal points of the bill are as follows:

  • Bans credit card funding of accounts.
  • Six deposits per 24-hour period of betting.
  • No push notifications from sportsbooks to solicit bets or deposits.
  • No advertisements where a majority of the audience is under the age of 21.

One of the bill’s chief architects, Senator Matt Ball, wrote the following regarding the protections designed in his legislation: “Online sports betting has placed casinos in the pocket of nearly every Coloradan with little protection built in for those addicted to gambling or our young people.

“(SB-131) honors what voters approved in 2019 while making sure that an industry that has grown from $1 billion to more than $6 billion wagered in just a few years  industry that has grown from $1 billion to more than $6 billion wagered in just a few year isn’t doing so at the cost of our families’ financial security, our kids’ well-being, or the integrity of the games we love.”

The bill’s co-sponsor, Senator Byron Pelton, stated, “Across rural and urban Colorado, families are seeing the very real harm that unchecked online sports betting can cause. We aren’t telling adults what to do; we’re putting basic consumer protections in place, especially for our kids, and making sure the industry is accountable when things go wrong.”

Prop Bets Remain

When legislators impose prohibitions on sports betting, they do so to protect those at risk of problem gambling. However, those guardrails must be weighed against the financial consequences they will have for sportsbooks and, by default, the tax revenue collected on those revenues.

In its initial iteration, SB-131 also included a ban on the lucrative prop bets allowed in Colorado and most other jurisdictions throughout the United States where sports betting is legal. However, prop betting, which allows a customer to bet on an individual’s performance, whether it is betting on over or under yards passed by a football quarterback or points scored by a basketball player, has grown increasingly popular.

Removing props from the state’s mobile sportsbooks’ betting menus would have cost the state $1.6 to $2.5 million in tax revenue, according to estimates. Therefore, it was not surprising that the prop ban was removed from the final version of the bill recently passed by the Colorado Senate.

Despite the prop ban being rescinded, the bill was well-received by anti-gambling groups like the nonprofit Healthier Colorado.

“Calls to our state’s gambling addiction hotline have jumped nearly 50% since legalization, and the harm continues to grow. We applaud the bipartisan sponsors of SB-131 for listening to the data, the experts, and the Coloradans living with this every day,” a spokesperson said for the nonprofit.

The bill has made its way to Colorado Governor Jared Polis’ desk for his signature. As consumer protection remains an ongoing priority in the industry, we always advise our readers to take advantage of the safer gambling tools available at our recommended sportsbooks to help maintain responsible betting habits.